Anti-Money Laundering Training Services

AML Training Services

Midshore are able to provide a full suite of training options, from regular staff awareness/update training through to workshops for the experienced MLRO. Training can be delivered live or via our MOT (Midshore Online Training) platform.

Midshore have also already prepared AML Refresher modules of which a certificate of completion will be awarded, you can take these online here.

Why do you need AML Training?

AML Training is a requirement under Article 46 of the Fourth Anti Money Laundering Directive (AML4D). Within the Channel Islands both the Bailiwick of Guernsey and Jersey have also made training a requirement within their AML / CFT Handbook’s.
For those working in the Gambling sector under the Alderney Gambling Commission:

  • The training should include proportionate measures to the nature of the business and its size
  • Training should be conducted at least every two years.

Midshore have come up with suitable training programs for staff members at all levels, these are outlined below.

AwarenessExpertWorkshop
Provides the following:Specialist training in:The workshop covers:
High level awareness of
AML /CFT
Anti-Money
Laundering
Risk Issues
Understanding the need of AML / CFT awarenessSanctionsMLRO Duties
Bribery &
Corruption
Handbook / Regulatory Updates
Case Studies
Recommended for: All staff within a businessRecommended for: Experienced Compliance Officers & MLROs Recommended for: Senior managers, Compliance Officers & MLROs

Midshore can also offer a fully tailored training program suited to your business needs. Please contact us for further information or to discuss your requirements.

International AML Services

International AML Services

As international regulatory specialists, Midshore are able to assist with AML/CFT regulation in many different countries. We are here to ensure businesses remain compliant, no matter how far those businesses expand geographically.

Every jurisdiction in the world has an AML/CFT regime that covers both their financial services industry and other areas such as professional services (law and accounting businesses). Whilst every country has their own legal and regulatory requirements the best practice “standard” are the 40 Recommendations and 9 Special Recommendations issued by the Financial Action Task Force (FATF).

Another multi-national requirement is the European Union’s 4th AML Directive, which has had to be transposed into the national law of the various EU member states.

Midshore’s AML/CFT Services for International Clients

  • Providing MLRO administration assistance
  • Mapping AML/CFT requirements for your business
  • implementing appropriate changes to procedures & policies
  • Ascertaining the need and scope of remediation – using our staff or yours
  • Assisting with your AML/CFT business risk management
  • Remediating your existing client base
  • Ensuring a review & monitoring programme is established
  • Training at levels appropriate for your staff

Different levels of service are available from consultation or advice (using our Assure by Midshore service) to full programme management with a team of analysts and administrators to assist. Please contact us to discuss the requirements of your business.

Jersey AML Services

Jersey AML Services

In the Bailiwick of Jersey the Jersey Financial Services Commission (JFSC) has responsibility for the supervision of those businesses who must comply with the island’s AML/CFT regime. This covers regulated financial services businesses as well as the legal sector, accounting sector, estate agents and high value dealers.

The Jersey AML/CFT Regime has remained unchanged since early 2015, however it may be expected that changes will be made to ensure that the deficiencies highlighted in the island’s latest MONEYVAL report are addressed before the next assessment visit is scheduled.

Midshore are able to assist with any business, financial services or otherwise, in compliance with the existing regime. We are also actively keeping abreast of any changes that may be made to ensure that we can assist our clients as the need arises.

Midshore’s AML/CFT Services for Jersey

  • Providing MLRO administration assistance
  • Mapping AML/CFT requirements for your business
  • Implementing appropriate changes to procedures & policies
  • Ascertaining the need and scope of remediation – using our staff or yours
  • Assisting with your AML / CFT business risk management
  • Remediating your existing client base
  • Ensuring a review & monitoring programme is established
  • Training at levels appropriate for your staff

Different levels of service are available from consultation or advice (using our Assure by Midshore service) to full programme management with a team of analysts and administrators to assist. Please contact us to discuss the requirements of your business.

Bailiwick of Guernsey AML Services

Guernsey & Alderney AML Services

The Bailiwick of Guernsey includes two AML/CFT regulators – the Guernsey Financial Services Commission (GFSC) and the Alderney Gambling Control Commission (AGCC). The GFSC covers both financial services businesses (regulated, non-regulated and money service providers) and prescribed businesses (legal professionals, accountants and estate agents). The AGCC is responsible for the eGambling industry.

The Guernsey AML/CFT Regime is currently undergoing review following an unprecedented number of responses to the recent consultation. The consultation contained many changes proposed by both the Government and the regulator to ensure that deficiencies highlighted in the island’s latest MONEYVAL report were addressed.

Whilst the new framework remains in flux, Midshore are able to assist with any regulated, registered or prescribed business in compliance with the existing regime. We are also actively keeping abreast of the coming changes and will be able to assist businesses throughout the transition period and beyond.

The AGCC has its own AML/CFT framework that eGambling licensees must comply with, including a comprehensive questionnaire to show compliance with the various requirements of the framework.

Midshore’s AML/CFT Services for Guernsey & Alderney

  • Act as MLRO on your behalf / Provide MLRO administration assistance
  • Mapping AML/CFT requirements for your business
  • Implementing appropriate changes to procedures & policies
  • Ascertaining the need and scope of remediation – using our staff or yours
  • Assisting with your AML / CFT business risk management
  • Remediating your exsisting client base
  • Ensuring a review & monitoring programme is established
  • Training at levels appropriate for your staff

Different levels of service are available from consultation or advice (using our Assure by Midshore service) to full programme management with a team of analysts and administrators to assist. Please contact us to discuss the requirements of your business.

Anti-Money Laundering Services

Every jurisdiction in the world has an AML/CFT regime that complies, to varying degrees, with the 40 Recommendations and 9 Special Recommendations set out by the Financial Action Task Force (FATF). Each jurisdiction’s regime is benchmarked for compliance with these Recommendations by a peer review process.

For the Bailiwicks of Guernsey and Jersey this process is performed by MONEYVAL, part of the Council of Europe. Licensees in any jurisdiction will need to ensure that AML/CFT compliance is at the core of their business to ensure compliance with their own national regime.

Midshore can assist any business in complying with their local regime, as well as ensuring that changes to the regime are implemented in a timely and cost-effective way.

Midshore can assist by:

  • Mapping AML/CFT requirements for your business
  • Implementing appropriate changes to procedures & policies
  • Ascertaining the need and scope of remediation
  • Remediating your existing clients
  • Assisting with your business AML/CFT business risk assessment
  • Ensuring a review and monitoring programme is established
  • Providing progress reports and a final report detailing all work undertaken
  • Training your staff on the latest AML/CFT regime either in-house or online
  • Provide training for the CISI’s Combating Financial Crime examination

Different levels of service are available from consultation/advice to full programme management with a team of analysts & administrators to assist with remediation. Correcting or completing the documentation held on client files is one of the easy, but often overlooked, ways to ensure your business remains on the right side of regulation.

Midshore can also provide a Money Laundering Reporting Officer (“MLRO”, where permitted by the local regulatory regime) or outsourced assistance to provide valuable resource to your own MLRO.

We will remain abreast of changes in the relevant AML/CFT regime and will implement regulatory changes into our programme as they are published. It is important for our clients to be sure that they are compliant with the latest AML/CFT requirements wherever they are based.

Our Brand New Online Training Platform

We are pleased to announce the launch of our brand new Online Training Platform – Midshore Online Training (MOT).

MOT provides many great and useful features such as the ability to list users as Students and Teachers, making it easy for us to help you set up your very own “online classroom” for your business / organisation.

Teachers will be able to access reports on their students which will allow them to not only view how far through the course their student is but also see what grades have been achieved and who by, plus much more.

NOTE: The amount of Teachers / Students is up to you (example: 1 Teacher + 100 Students / 3 Teachers + 25 Students etc)

All of our training is now available to take via MOT and includes courses such as:

Any student that passes a course with the maximum grade will be awarded with an Online “Badge” which is not only designed for “bragging rights” but also to prove that the student has fully understood the materials provided during the course.
(These badges can only be obtained by achieving the maximum grade for the relevant course)

Each course has a test / quiz to complete at the end. A Certificate of Completion will be provided on completion of any course on request (CPD provided).

Check it out for yourself at:

 www.MidshoreOnlineTraining.com

If you would like to learn more, or request a demo for your business / organisation, please contact us by using one of the methods below:

Telephone: (+44) 01481 730733

Email: enquiries@midshoreconsulting.com

AML Refresher Modules Available!

AML Training is a requirement under Article 46 of the Fourth Anti Money Laundering Directive (AML4D) and The Channel Islands (both the Bailiwick of Guernsey and Jersey) have also made training a requirement within their AML / CFT Handbook’s.

With this in mind, Midshore have prepared AML Refresher Modules of which a certificate of completion will be awarded, you can view further details below.

Bulk discounts are available if booking any of the following modules for multiple staff members, if you are interested in this option please contact us with your requirements.

Bulk discounts are as follows:

2-10 Staff: 5%
10+ Staff: 10%

Anti-Money Laundering Refresher (Compliance Officers & MLROs)

Topics covered:

  • Introduction to Money Laundering
  • Guernsey Law & Regulation
  • Terrorist Financing
  • Suspicious Activity Reporting
  • Money Laundering Reporting Officer

Cost: £35

or call 01481 730733

AML Bribery Refresher Module (Compliance Officers & MLROs)

Topics covered:

  • Background to the UK Bribery Act
  • The Offences
  • What the Offences cover
  • When has an Offence been committed?
  • The Defences against charges of Bribery
  • Penalties, cases & latest developments

Cost: £35

AML Sanctions Refresher (Compliance Officers & MLROs)

Topics covered:

  • Sanctions
  • Global Markets
  • Trade Sanctions
  • Political, Economic & Financial Sanctions
  • Financial Sanctions in Guernsey
  • Financial Sanction Systems & Controls
  • Consequences of Sanctions

Cost: £35

or call 01481 730733

Guernsey Financial Services AML / CFT Refresher (2018)

Topics covered:

  • Money Laundering
  • Terrorist Financing
  • Proliferation Financing
  • Sanctions
  • Bribery & Corruption
  • Guernsey’s AML / CFT Regime

Cost: £35

or call 01481 730733

Regular Training – More than just a Regulatory Burden!

Business regulated by or registered with the Alderney Gambling Control Commission (AGCC), the Guernsey Financial Services Commission (GFSC) and the Jersey Financial Services Commission (JFSC) have requirements under the relevant AML/CFT (Anti Money Laundering and Combating the Financing of Terrorism) handbooks or guidelines to ensure regular ongoing training for their staff in this area.

The requirement to train staff in this area is not new, however often training is carried out in these areas alone, and is directed if not carried out by the Money Laundering Reporting Officer (MLRO). How many times have experienced practitioners been forced to take time out from their working day to sit through an hour-long in-house seminar and are able to repeat “placement – layering – integration” or “maximum of 14 years in prison and an unlimited fine” verbatim at their course leader simply from hearing it so many times. Also, how many people have been forced to watch an AML DVD with dodgy acting from Z-list actors portraying farcical characters?

Running in-house training sessions during lunch breaks inevitably leads to:

  • Running multiple training sessions, taking up the valuable time of the MLRO
  • Running additional training sessions for those who are unexpected unable to attend at the last minute (sickness or business)
  • New staff members joining the company who need to have the training provided as part of their induction, which will often be at a time when regular staff training is not scheduled
  • Knowing that someone has been physically present without being able to prove that they were mentally present
  • Lack of quantitative proof of the effectiveness of the training

Clearly, this is not the best solution to a regulatory training need.

Convenience and Scalability

In the modern era we often talk about flexibility, and this is now something that can be offered in the ongoing training space. Let’s take an example.

Company A decides that its employees need to complete their regular AML/CFT training in line with regulatory requirements. The company has engaged with an online training provider (who happen to be called Midshore) to use their online training solution. Taking the experiences of various executives of the company:

  • The Managing Director decides to login from his tablet at home one evening to complete the training – leading by example is important
  • The Sales Director has a rare few days in the office so decides he will complete it one lunchtime whilst eating a sandwich at his desk
  • The Operations Manager doesn’t have enough time during the working day so takes her mobile phone to the gym, logs into their Wi-Fi and burns calories on the cross-trainer at the same time
  • The MLRO and the Human Resources Manager receive regular reports on who has completed the training, together with the score that each employee has received for their end of course test

Midshore Online Training (MOT)

Midshore Online Training (MOT) is the online training solution brought to you by Midshore Consulting. Regularly updated, the Midshore AML/CFT training includes sections on Proliferation Financing, Sanctions and Anti-Bribery and Corruption (ABC) alongside the standard AML/CFT subject matter.

The training module consists of:

  • Online training video
  • Printable course notes
  • 15-question end of module test (75% pass mark)
  • Printable certificate of completion

Using MOT also means that staff located in other jurisdictions (including those in outsourced or offshored operations) can receive identical training to local staff.

MOT – more than AML/CFT

Regulation and legal requirements are changing all the time, additionally local businesses are not just impacted by local law and regulation. Staff in regulated businesses should receive more than just AML/CFT training on a regular basis to ensure that they remain aware of their responsibilities in a number of key areas. This is why the MOT suite of modules will also include:

At this point, it almost seemed appropriate to include a pun about booking staff in for a MOT! However, should you be interested in a scalable and cost-effective solution to ensuring your staff have up to date regulatory knowledge please contact us.

Midshore can also run in-house training, including practical workshops tailored to the needs of your business.

A Time for (Regulatory) Change

Summer…. A time for holidays, beaches, ice cream and regulation!

It might be the time of year when many people think about slowing down, but those responsible for the regulatory programme in any Guernsey-based financial services business have much to keep them busy. Ignoring minor changes to the Prospectus Rules & Registered Funds Rules there are some major changes in the pipeline. In this article, we will examine five key changes and their implications before looking at what more is to come.

Pension Rules

What is it?The Pension Licensees (Conduct of Business) & Domestic and International Pension Scheme and Gratuity Scheme Rules 2017Stage:The Rules are finalisedImplementation:30th September 2018Impact:Licensees undertaking Pension Scheme & Gratuity Scheme formation, management and/or administration

The Rules cover the formation, management or administration of Pension Schemes or Gratuity Schemes under the Fiduciaries Law. The Rules bear some striking similarities to the Conduct of Business Rules for Investment Licensees, which makes sense given that many pension schemes operate in a manner analogous to collective investment schemes.Key Deliverables:By 30 September 2017 Licensees must have conducted an assessment of the internal controls in order to identify and plan for any amendments required to ensure compliance with the Rules by 30 September 2018.

MiFID II & MiFIR

What is it?The Markets in Financial Instruments Directive II
The Markets in Financial Instruments RegulationStage:The Directive & Regulation are finalisedImplementation:3rd January 2018Impact:Licensees providing a range of activities* on various instruments to clients in the European Union (including the UK)

* Reception/transmission of orders; execution of client orders; dealing on own account; portfolio management; investment advice; underwriting of financial instruments; placing of financial instruments; operation of a MTF or OTF.

The Directive and Regulation cover the provision of various investment services to people and institutions in the European Union. Both the Directive and the Regulation include requirements for the provision of services from third countries (non-EU). At this point the Guernsey Financial Services Commission is not considering wholescale adoption of MiFID II & MiFIR.Key Deliverables:Consider what activities are provided to EU-based clients, including potential marketing to attract new clients. Please be aware that not only Investment Licensees will be captured as the Directive and Regulation work on the basis of the activities and instruments rather than a category of licensee.

GDPR & New Guernsey Data Protection Law

What is it?General Data Protection Regulation
Guernsey Data Protection Law (new version to achieve equivalence)Stage:The EU Regulation is finalised; The Guernsey Law is in draftImplementation:25th May 2018Impact:All businesses holding personal data

The Regulation gives increased rights to data subjects, increased requirements for data controllers and data processors, increased fines and penalties to regulators, and increased responsibilities for data protection officers.Key Deliverable:Consider what data is being held, why it is held, whether it is held securely and how is it accessed/maintained. Review internal documentation as well as client consent collection. Ensure all stages of your project are documented as your “road to compliance”.

New Guernsey AML/CFT Framework

What is it?The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) (Amendment) Ordinance, 2017
Handbook on Countering Financial Crime and Terrorist FinancingStage:Consultation (until 31 July 2017)Implementation:TBCImpact:All regulated financial services businesses, registered financial services business & prescribed businesses

The updated Ordinance and Handbook seek to deal with “deficiencies” identified in the Moneyval review of the Guernsey AML/CFT framework. The changes will place additional requirements on impacted businesses and require new business risk assessments, policies, procedures & controls. There is also a requirement to review existing business relationships to ensure information held complies with the new standards.

Consider the resources that will be needed to complete the following:

  • 4 months after implementation – revised business risk assessment
  • 6 months after implementation – revised policies, procedures & controls
  • 1 year after implementation – review existing high-risk business relationships
  • 2 years after implementation – review all other existing business relationships

Lending, Credit & Finance Framework

What is it?Lending, Credit & Finance Consultation PaperStage:Consultation (until 15 September 2017)Implementation:TBCImpact:Registered financial services business, regulated financial services businesses & other affected businesses

The consultation proposes replacing the existing Non-Registered Financial Services Business (NRFSB) framework with a new Lending Credit & Finance Framework, splitting business into three supervision categories:

  1. Alternative Financial Products & Services
  2. AML/CFT only
  3. Consumer Lending & Credit

Existing regulated financial services businesses (such as banks) may also need to register under the new framework (for example under category 3 if the bank providers consumer lending services). Other businesses, which are currently not regulated, may require licensing under the proposals (e.g. an AML/CFT platform).

Consider the resources that will be needed to complete the following:

  • 30 business days before implementation – submit Notice of Intent
  • 3 months after implementation – deadline for applying for a Class 3 Licence
  • 6 months after implementation – deadline for applying for a Class 1 Licence
  • General – ensuring new policies, procedures and processes are in place, particularly those required for applications to the Commission

More to come…

Don’t forget that other changes are still expected over the coming year (or more), including:

  • New/Revised Financial Services legislation – beginning with the Enforcement Law
  • Investment & Fiduciary Division review of the Client Money & Client Asset rules
  • Clarification of the landscape post-Brexit
  • Expansion to countries reported under CRS
  • Measures introduced to ensure BEPS-compliance

What next?

For help with any new, existing or updated regulation impacting on your business please contact Midshore Consulting. We are here to help, and the first consultation is free.

Please contact us here.

Combating Financial Crime – more than just AML

Money Laundering (ML) and know your customer (KYC)

Back when we all first started performing KYC (know your customer) checks on our customers the focus was on two main objectives:

1. Ensuring sufficient documentation was held on the registered holder – know your customer (KYC)
2. Trying to stop Money Laundering (ML) – hence the term Anti Money Laundering (AML)

Essentially, we were all trying to make sure that our financial products weren’t being used for ML, which, by definition, has to have a predicate offence (the money must be the proceeds of crime and therefore there must have been an initial criminal act). Of primary interest was the proceeds of drug trafficking, however the predicate offence could be anything from simple theft through tax evasion to major fraud.

AML was just the beginning; however the concept of financial crime has evolved to encompass many more aspects. The Money Laundering Reporting Officer (MLRO) and their deputies have evolved to include:

Terrorist Financing (TF)

In 1999 the United Nations had already passed their International Convention for the Suppression of the Financing of Terrorism and in 2000 the UK had passed their Terrorist Act (TACT) before the horrific terrorist activities of 9/11 in 2001 brought the full attention of the world to bear on counter-terrorist financing (CTF), also known as combating the financing of terrorist (CFT).

The biggest difference between TF and ML is that the money involved in TF is usually “clean” to start with. There is no predicate offence and the money is not the proceeds of crime. The criminal element is what the money is being used to fund. TF can therefore be looked at as the reverse of ML – TF takes clean money and uses this to fund criminal (terrorist) activity whereas ML is seeking to take criminal money and separate it from the crime to create “clean” money.

The other significant difference is that relatively small amounts of money can be used to finance terrorist activities, whereas ML normally involves “laundering” larger sums of money.

ML gave us the opportunity to focus on where money was coming from/how it was obtained and the preference for focusing on larger sums. Adding TF into the mix means a different focus to where money is going/what it will be used for and focusing on larger transactions becomes less relevant.

Proliferation Financing (PF)

Proliferation relates to making available, or aiding in the development of, nuclear, chemical or biological weapons. This is different to TF in that PF relates to the financing of activities of sovereign nations.

Under United Nations Security Council (UNSC) Resolution 1803 there is the requirement for Counter Proliferation Financing (CPF) Reporting. This would be done on a Suspicious Activity Report (SAR) the same as reporting for both ML and TF.

Whilst TF is not the same as PF there are similarities in that normally the money used for PF will not itself be the proceeds of crime, but rather the money will be used for a criminal activity.

Anti-Bribery & Corruption (ABC)

Bribery and Corruption are two separate, yet linked, concepts – it is very difficult to bribe an official who is not corrupt.

  • Bribery is the offering, promising, giving, accepting, or soliciting of money, gifts or other advantage as an inducement to do something that is illegal or a breach of trust in the course of carrying out an organisation’s activities
  • Corruption is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party

A financial institution’s AML, CTF & CPF procedures, which are largely about ensuring that internal processes stop clients from performing illegal acts and the institution becoming complicit. ABC policies should ensure that not only are clients not falling foul of legislation, but nor is the institution itself in its own activities.

Sanctions

Sanctions are measures adopted against a country, regime or individual (collectively “entities”) believed to be violating international law. They are political trade restrictions put in place with the aim of maintaining or restoring international peace and security.

Sanctions can be targeted at entities that are known to engage in terrorist activity or weapons proliferation, however sanctions may also be implemented as result of human rights violations or because of military action (one nation invades or annexes all or part of another nation).

Sanctions tend to be restrictive, coercive measures, that may involve:

  • Freezing of funds
  • Withdrawal of financial services
  • Bans or restrictions on trade or travel
  • Suspension from membership of international organisations

A review of possibly sanctioned individuals should include not only prospective customers, but also those existing customers who become the subject of sanctions. Whilst a sanctioned individual may not be guilty of a financial crime the identification of sanctioned entities (and subsequent reporting if necessary) is normally made a function of the MLRO and their team.

Politically Exposed Persons (PEPs)

Whilst a client being identified as a PEP is not necessarily a financial crime indicator it is most definitely a risk “flag” due to there being a higher chance of the individual being involved in ABC, PF or being sanctioned. These also lead to a higher risk of ML as the likelihood of a predicate offence is greater.

It should be noted, however, that involvement of a PEP in a legal structure is not necessarily a high risk indicator as the existence of the structure combined with policies and procedures may make it impossible for the PEP to illegally access the funds of the legal structure.

Consider a U.S. State Pension Fund where (maybe) the Governor (a PEP) is on the board of the fund structure. The State Pension Fund makes an investment into a Guernsey-based open-ended fund that will only receive monies from the registered investor and will only pay back to the registered investor. There is no possibility of embezzlement in this structure and with these policies/procedures in place.

Evolution of the MLRO

We can now see that the MLRO has multiple roles:

  • Ensuring that the financial system is not being used for ML, TF or PF
  • Ensuring that ABC policies are adhered to
  • Ensuring that Sanctions are not breached
  • Ensuring that high-risk individuals (such as PEPs) are identified

Whilst the tone from the top (i.e. the board and senior management) is important in ensuring corporate culture induces compliance with all relevant policies and procedures, it is the MLRO who ensures compliance on a day-to-day basis.

Whilst the stakes are high the MLRO needs to ensure that decisions are pragmatic and that their role does not become that of the Business Prevention Unit. Properly risk-rated business can be taken on and administered with minimal disruption.

It is also important to note that Customer Due Diligence (CDD) processes designed for KYC should be enhanced to ensure that requirements for FATCA and CRS are integrated into one seamless process. Whilst the MLRO may not be the Responsible Person for FATCA they should ensure that all take on requirements form one process, particularly as tax evasion itself is a predicate offence that we all want to avoid.

The role of the MLRO is only going to get more complicated in future and a good MLRO needs to be prepared. Qualifications such as the Award in Combating Financial Crime offered by the CISI give a good grounding in all of the relevant skill sets required for this position.